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AMB336 Assessment 1
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Tassy Gold - Case Analysis
Word Count: 1540/1650
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Cooper Luskan, n9465812
Tutor: Gilbert Cruz-Carreon
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Section 1)
Tassy Gold is a Tasmanian company that specialises in the production, distribution and retail
of premium woollen skirts. The company’s production has been outsourced to Vietnam, and
as the marketing manager it is my job to recommend the entry into one of two possible
markets: France or Russia. The chosen country will be Russia, due to its luxury market, which
is growing markedly faster than more mature markets such as France (Rakhlenko, 2017). The
market has shown increases in luxury spending “in all categories of upmarket commodities”
(Karnaukh, 2017), and as a result, it has been selected as the point of entry for the brands
international sales efforts, due to its rapid growth and less established industry and
competitors.
Social awareness amongst consumers is on the rise; however they expect businesses to lead
the way (Bonini & Oppenheim, 2008). As such brands that are seen to be socially responsible
(CSR) are able to capitalize on this positive point of difference and generate favourable
stakeholder attitudes, such as purchasing behaviour and brand loyalty (Du, Bhattacharya, &
Sen, 2010). Some of the most relevant ethical issues for the business in this instance are the
production practices used in the outsourced production environment, the methods used to
harvest the wool used for the brands products, and the quality of the product.
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By Cooper Luskan, n9465812
Section 2)
With an international sales venture, Tassy Gold needs to understand that marketing from
Australia to a higher context collectivist society such as Russia (Engelhard & Nägele, 2003) is
a complex task. Communication is often more nuanced, and the listener is required to “read
between the lines” (Maclachlan, 2010), unlike in Australia where communication tends to be
more straightforward. As stated in section 1, there are vast arrays of issues that need to be
considered in relation to the socio-cultural and consumer behaviour aspects of a venture
such as this; however the most relevant issues (and the ethical implications associated with
them) are as follows:
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Cultural Differences
Russia is a high context culture which varies drastically from the environment we as
a company are accustomed to. Using information taken from Maclachlan (2010), I
will apply Trompenaars’ Dimensions of Culture (Mind Tools, n.d.) to the Russian
consumer.
1) Russians are a particularist culture, believing that some rules can be
bent (Vorobyeva, 2015) and there isn’t a “one size fits all” approach to
all situations. Relationships are important, especially in business.
2) Russians are a communitarianist culture. With roots in agriculture and
farming communities, Russians think about the effect of their actions
upon the group, not the individual.
3) Russians are a diffuse culture. Work and social lives overlap, because
people see relationships as key to doing business.
4) Russians are an affective culture, however being high context, some
things aren’t explicitly stated. Furthers importance of relationships in
business.
5) Russians value ascription, with position and age being key indicators of
status.
6) Russians perceive time as synchronous. They are extremely patient, and
can work on multiple things at once. Commitments can be viewed as
flexible.
7) Finally, Russians believe in outer direction. They believe that their
environment controls them, and their actions are chosen to positively
impact others. They often need re-assurance that they’re doing the right
thing.
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Section 3)
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